Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Fevertree: strong overseas sales but costs take toll
Fevertree Drinks [LON:FVR] has this morning published full year results. Global revenues are up 11%, with growth beyond the UK being specifically compelling. However profits are down 9% and margins have taken a 760 bps hit, eroding cash balances and causing management to take a conservative path when it comes to dividends. The business is focused on a series of cost saving measure and whilst sales growth is tipped to continue next year, expectations are for EBITDA to remain broadly flat.
- Shepherd Neame profits rise, but labour cost pressures threaten growth
- UK Stock Market News: Bellway, AG Barr, Fevertree
- Companies Reporting: Fevertree, Vistry, Next
#2. Shepherd Neame interims show upbeat sales demand, dividend hike
Keeping with the drinks industry and Aquis-listed Shepherd Neame [AQSE:SHEP] has interim results out today for the six months to 24th December. The period saw strong consumer demand but was impacted by rising costs which in turn eroded margin. Underlying pre-tax profits advanced by 15% and interim dividends have been increased by a similar amount, rising from 3.5p to 4p.
#3. Motor retailer Pendragon sees good momentum, margins squeezed
Motor retailer Pendragon LON:PDG has full year results out this morning for the period to 31st December. The company noted good momentum despite challenging macroeconomic conditions, with revenues adding 4.7% although profitability was rather less impressive, slipping 26% on a post-tax basis. Management add however that the picture is improved in the first two months of the new financial year with profitability ahead of the comparative and expects a range of operational initiatives to outweigh cost inflation before interest in 2023.
